TY - JOUR
T1 - Technical change, markup, divestiture, and productivity growth in the U.S. telecommunications industry
AU - Nadiri, M. Ishaq
AU - Nandi, Banani
PY - 1999/8
Y1 - 1999/8
N2 - This paper examines the sources of productivity growth for the U.S. telecommunications industry from 1935 to 1987. These years encompass both the pre- and post-AT&T divestitureperiods. We formulate a structural model that accounts for both changes in the cost and the demand side of the industry. We measure the contributions of aggregate demand, information intensity of the economy, price-cost margins, relative factor prices, direct and indirect effects of technological progress, and R&D investment on total-factor productivity (TFP) growth rate. We show that TFP growth rate as conventionally measured is a seriously biased measure of rate of technical change in this industry.
AB - This paper examines the sources of productivity growth for the U.S. telecommunications industry from 1935 to 1987. These years encompass both the pre- and post-AT&T divestitureperiods. We formulate a structural model that accounts for both changes in the cost and the demand side of the industry. We measure the contributions of aggregate demand, information intensity of the economy, price-cost margins, relative factor prices, direct and indirect effects of technological progress, and R&D investment on total-factor productivity (TFP) growth rate. We show that TFP growth rate as conventionally measured is a seriously biased measure of rate of technical change in this industry.
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U2 - 10.1162/003465399558247
DO - 10.1162/003465399558247
M3 - Article
AN - SCOPUS:0033468258
SN - 0034-6535
VL - 81
SP - 488
EP - 497
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 3
ER -